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Vol. 58, No. 4, pp. 314-322 (2007)

“European Financial Integration Reconsidered―Distance Matters―”
Mechthild Schrooten (University of Applied Science Bremen, Germany)

All direct legal barriers of cross-border banking and investment activities have been abolished in Europe. Using a new data set, we take a closer look at the determinants of intra-European portfolio investment activities. It becomes clear that distance has remained important for cross-border investments within the euro zone.